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                              ETM
PETIETN SE                    E I EVO
         PLACIDAM SVB LIBERTAT

                                            Commonwealth of Massachusetts                          Department of Revenue

                                     2020 Instructions

                                     for Massachusetts

                                     Premium Excise

                                     Return for Insurance

                                     Companies

                                     63-23P
                                     Form 

                                     Massachusetts has an electronic filing requirement for this
                                     form. See TIR 16-9 for further information.

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                                                     Employees Working Remotely due
Major 2020 Tax Law                                   to COVID-19: Massachusetts Tax                       General Instructions
                                                     Implications                                         Extension Due Dates
Changes                                              Massachusetts declared a state of emergency and      C corporations are allowed an automatic exten-
                                                     issued several health and safety related restric-    sion to file their tax returns if they satisfy the pay-
Federal Conformity
                                                     tions in response to the 2019 novel Coronavirus      ment requirements stated in TIR 15-15. Tax
Massachusetts generally follows the Internal Rev-
                                                     (“COVID-19”) pandemic. As a result, many busi-       returns filed on extension are due 6 months from
enue Code (IRC) as currently in effect for Mass-
                                                     nesses implemented work-from-home require-           the due date (October 15 in the case of corpora-
achusetts corporate excise tax purposes. For
                                                     ments for their employees. DOR has provided          tions filing on a calendar year basis). See TIR 17-
more up-to-date and detailed information on tax
                                                     Massachusetts tax relief in situations in which      5.
changes and federal conformity please see the
                                                     employees work remotely due solely to the
dedicated 2020 Tax Changes page on our website                                                            Form 63-23P filers will receive an automatic six-
                                                     COVID-19 pandemic to minimize disruption for
at https://www.mass.gov/orgs/massachusetts-                                                               month extension of time to file Form 63-23P pro-
                                                     corporations doing business in Massachusetts.
department-of-revenue.                                                                                    vided they meet certain payment requirements.
                                                     See 830 CMR 62.5A.3: Massachusetts Source In-
Coronavirus Aid, Relief, and                         come of Non Residents Telecommuting due to           DOR has adopted an automated proc ess for ex-
                                                     the COVID-19 Pandemic, and TIR 20-15: Revised        tensions of time to file tax returns for corporate
Economic Security Act                                Guidance on the Massachusetts Tax Implications       excise taxpayers, as part of the MassTaxConnect
On March 27, 2020, Public Law 116-136, the           of an Employee Working Remotely due to the           system. Consistent with current rules, insurance
Coronavirus Aid, Relief, and Economic Security       COVID-19 Pandemic. These rules are effective         companies meeting certain payment require-
Act (the CARES Act), was signed into law. The        until 90 days after the state of emergency in        ments will be given an automatic six-month ex-
CARES Act provides for federal changes to a va-      Massachusetts is lifted.                             tension. For further information, see TIR 15-15.
riety of provisions of the Internal Revenue Code
(IRC) that affect business entities subject to the   DOR will not consider the presence of one or         Note: An extension of time to file is not valid if
corporate and ﬁnancial institution excise. In re-    more employees working remotely from Mass-           the corporation fails to pay at least 50% of the
sponse to the CARES Act, the Department of Rev-      achusetts solely due to a Pandemic-Related Cir-      total tax liability or the minimum tax of $456,
enue (DOR) issued TIR 20-9: Massachusetts Tax        cumstance, including the presence of business        which ever is greater, through estimated payments
Implications of Selected Provisions of the Federal   property reasonably needed for such persons’         or an extension payment, by or before the due
CARES Act, which addresses various provisions        use while working remotely, to be sufficient in      date of the original return.
that are specific to corporations and small busi-    and of itself to establish corporate nexus and a     Any tax not paid on or before the due date —
nesses including (1) small business loan forgive-    corporate excise filing requirement. In addition,    without regard to the extension — shall be sub-
ness, (2) modifications to the federal limitations   such presence will not, of itself, cause a corpora-  ject to an interest charge.
on net operating losses, (3) modifications to lim-   tion to lose the protections of Public Law 86-272.
itation on business interest deduction, (4) techni-  Relatedly, for corporate apportionment purposes,     Electronic Filing and Payment
cal amendments regarding qualified improvement       (i) services performed by such persons in Mass-      Requirements
property, and (5) modification of limitation on      achusetts will not increase the numerator of the     Insurance companies are required to file and pay
charitable contributions during 2020. TIR 20-9 is    employer’s payroll factor, and (ii) the presence in  their taxes electronically. For further information,
available on DOR’s website.                          Massachusetts of business property reasonably        see TIR 16-9.
                                                     needed for such persons’ use while working re-       Who Must File Form 63-23P?
Tax Cuts and Jobs Act                                motely will not increase the numerator of the em-    All domestic insurance companies subject to
The Tax Cuts and Jobs Act (TCJA) also changed        ployer’s property factor.                            MGL ch 63, §§ 22 and 22A must file Form 63-
a variety of provisions of the IRC that affect busi-                                                      23P. Life insurance companies and ocean marine
ness entities subject to the corporate and finan-    Filing Due Dates                                     business companies do not file this form. See in-
cial institution excise. In response to the TCJA,    Massachusetts General Laws (MGL) ch 62C, §§          structions for Form 63-23P and Form 63-29A.
DOR issued written guidance addressing the im-       11 and 12 require C corporations to file their tax
pact of the TCJA in Massachusetts. See e.g., TIR     returns on or before the 15th day of the fourth      A domestic company is a company incorporated
19-17: Application of IRC § 163(j) Interest Ex-      month following the close of each taxable year       or formed in the Commonwealth.
pense Limitation to Corporate Taxpayers, TIR 19-     (April 15 in the case of corporations filing on a    All classes of foreign insurance companies sub-
11: Legislation Impacting the Massachusetts Tax      calendar year basis). The filing due date for S cor- ject to MGL ch 63, §§ 23 and 24A must file Form
Treatment of Selected International Provisions of    poration tax returns is the 15th day of the third    63-23P. Life insurance companies that are taxable
the Federal Tax Cuts and Jobs Act, TIR 19-9: Ex-     month following the close of each taxable year.      under MGL ch 63, § 20, 21 or 23 and marine
tension of Time to File Short-Year Returns Result-   See TIR 17-5.                                        business companies taxable under MGL ch 63, §
ing from Partnership Technical Termination, TIR      For most calendar year filers, returns are due       29A do not file this form. See instructions for
19-7: Massachusetts Treatment of Investments in      April 15, 2021.                                      Form 63-23P and Form 63-29A.
Qualified Opportunity Zones, and TIR 19-6: Im-                                                            A foreign company is any company organized or
pact of the Federal Tax Cuts and Jobs Act on a                                                            formed in any state or country other than Mass-
Taxpayer’s Overall Method of Accounting for                                                               achusetts.
Massachusetts Purposes. All of these TIRs are
available on DOR’s website.                                                                               All domestic or foreign organizations that offer
                                                                                                          preferred provider ar range ments under MGL ch
                                                                                                          176I are required to file this form. The due date

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for returns filed pursuant to MGL ch 176I, § 11,
is March 15.
If you are a domestic property and casualty in-
surer, complete lines 1 through 5 on page 1. Also
complete any applicable lines on page 2 and 3 of
Form 63-23P. In addition, complete the sections
Part 1, Premium Excise and Part 2, Gross Invest-
ment income.
If you are a foreign property and casualty insurer,
complete lines 6 through 14 on page 1. Also
complete any applicable lines on page 2 and 3 of
Form 63-23P. In addition, complete the section
Part 3, Computation of Retaliatory Tax.
If you are an insured preferred provider and ca-
sualty insurer subject to MGL ch 176I, complete
lines 15 through 20 on page 1 and all applicable
lines on pages 2 and 3 of Form 63-23P. You are
not required to complete Parts 1, 2 or 3.
Only in rare circumstances should you fill out
more than one section on page 1.
What Are the Penalties for Late Returns?
Insurance excise returns that are not filed and/or
paid on or before the due date are subject to in-
terest and penalty charges. The penalty for failure
to pay the total amount due with this form is 1%
of the balance due per month (or fraction
thereof), up to a maximum of 25%. A late pay-
ment penalty does not apply to amended returns
when the amount shown on the original return
was paid.
The penalty for failure to file a return by the due
date is 1% of the balance due per month (or frac-
tion thereof), up to a maximum of 25%.
Any tax not paid on or before the due date —
without regard to the extension — is subject to
interest.
What Is a Valid Return?
A valid return is one upon which all required
amounts have been entered for all of the appro-
priate items on the form. Applicable forms and
documents may be enclosed to explain these
amounts. Referencing enclosed items instead of
properly entering all amounts onto the return is
not sufficient. The return must be signed by either
the treasurer or assistant treasurer of the com-
pany.
Documentation of Premiums
Domestic property and casualty insurers should
include the following schedules:

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Insurance companies are required to file a dispute
online at mass.gov/masstaxconnect.
Visit https://www.mass.gov/info-details/amend-
your-tax-return-or-request-an-abatement-of-tax
for additional information about filing an
amended return, or filing an application for abate-
ment.
What if the Taxpayer Is a Fiscal or Short
Year Filer?
File the 2020 return for calendar year 2020 and
fiscal years that began in 2020 and ended in
2021. For a fiscal year return, fill in the tax year
space at the top of page 1. Short year filers
should file using the tax form for the calendar
year within which the short year falls. If the short
year spans more than one calendar year, the filer
should file use the tax form for the calendar year
in which the short year began. If the current form
is not available at the time the short year filer
must file, the filer should follow the rules ex-
plained in TIR 11-12.
Are There Special Tax Credits Available In
Massachusetts?
Yes. Massachusetts offers several special credits
to corporations. See instructions for Schedule
CMS, Credit Manager Schedule, beginning on
page 5.

Line Instructions
Should the Whole Dollar Method Be Used?
Yes. All amounts entered must be rounded off to
the nearest dollar.
Note: Ocean marine premiums reported on your
2020 Ocean Marine Profits Tax Return are de-
ductible from net direct premiums.
Computation of Excise
Line 1
Multiply the amount from Part 1, line 5 by 0.0228
and enter in line 1. If amount is negative, enter 0.
Taxable premiums are derived from net direct
premiums subject to tax in Massachusetts from
Schedule T of the NAIC Annual Statement, and
net direct premiums from other states or coun-
tries where no tax has been paid. Include in this
amount any finance and service charges from
Schedule T.
Form 63-23P filers are allowed a dividend deduc-
tion for premiums returned or credited to policy-
holders in Massachusetts as dividends on direct
business from Schedule T of the NAIC Annual
Statement.
Net direct premiums are gross premiums, exclu-
sive of reinsurance assumed as written in:

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Line 21                                              This credit is effective for tax years in which the The overpayment may be applied in part or in full
A company that contributes its full and propor-      aggregate cumulative investment in the Property     to 2021 estimated taxes by entering in line 38 the
tionate share to the Property and Casualty Initia-   and Casualty Initiative reaches $100,000,000 or     amount to be credited to 2021 estimated tax pay-
tive may receive a credit against the premium tax    the tax year 2004, whichever is later.              ments. Enter the amount to be refunded in line
equal to increasing percentages of the retaliatory                                                       39.
                                                     Line 24
taxes paid during the preceding taxable year at-                                                         Note: The due dates for estimated tax payments
                                                     Enter 10% of the assessment for each of five
tributable to the surtax. If the aggregate cumula-                                                       are not the same as the return due dates for cor-
                                                     years following the year in which the assessment
tive investment by domestic property and                                                                 porations. An overpayment from the prior year re-
                                                     was  paid.  If  the  sum  of  offsets  exceeds
casualty companies in the Property and Casu alty                                                         turn applied to the following year’s estimated tax
                                                     $3,000,000, the excess may be carried forward
Initiative reaches $100,000,000, the credit shall                                                        will be credited on the 15th day of the fourth
                                                     and  may  be  used  in  a  year  in  which  the
equal 100% of the retaliatory taxes attributable to                                                      month; one month after the due date for the first
                                                     $3,000,000 is not exceeded. If the total offsets
the surcharge. The amount of the credit is 20%                                                           installment.
                                                     exceed $3,000,000 in a year, DOR will assess
for the tax year beginning on or after January 1,
                                                     each member with an additional tax equal to the
1999, or the first year in which a participating                                                         An overpayment of excise cannot be applied as a
                                                     amount of the offset which exceeds $3,000,000
property and casualty company contributes its                                                            credit to the tax of another account of this com-
                                                     of such members pro rata share. If the total off-
full proportionate share. The amount of the credit                                                       pany or to the tax of another company.
                                                     sets do not exceed $3,000,000 in a year, DOR will
is 40% for the tax year beginning on or after Jan-                                                       Line 40
                                                     calculate each members’ pro rata share to deter-
uary 1, 2000, or the second year in which a par-                                                         If line 29 is larger than line 36, enter the balance
                                                     mine the amount of refund due each member and
ticipating property and casualty company                                                                 due in line 40.
                                                     issue a refund to each member.
contrib utes its full proportionate share. The
amount of credit is 60% for the tax year begin-      Line 25                                             Lines 41a through 42
ning on or after January 1, 2001, or the third year  Enter the total amount of other credits claimed     Any company that has an underpayment of esti-
in which the participating property and casualty     from the Schedule CMS. Do not include refund-       mated tax will incur a penalty on the underpay-
company contributes its full pro portionate share.   able credits that you will be reporting below on    ment for the period of the underpayment. Enclose
The amount of credit is 80% for the tax year be-     line 35 in the total reported on this line.         a copy of Form M-2220. For more in formation,
ginning on or after January 1, 2002, or the fourth                                                       refer to the section, When Are Estimated Tax Pay-
year in which the participating property and ca-     Line 28                                             ments Required?
sualty company contributes its full proportionate    Any corporation that wishes to contribute any
                                                                                                         Any company that fails to file a timely return will
share. The amount of the credit is 100% for the      amount to the Natural Heritage and Endangered
                                                                                                         be subject to a late filing penalty of 1% per
year beginning on or after January 1, 2003, or the   Species Fund may do so on this form. This
                                                                                                         month, or fraction thereof, and a late payment
fifth year in which a participating property and ca- amount is added to the excise due. It increases
                                                                                                         penalty of 1% per month, or fraction thereof, on
sualty company contributes its full proportionate    the amount of the cor poration’s payment or re-
                                                                                                         the amount required to be shown as the tax due
share.                                               duces the amount of its refund.
                                                                                                         on the return. For more information, refer to the
The total amount of the credit shall not exceed      The Natural Heritage and Endangered Species         section, What Are the Penalties for Late Returns?
$8,000,000 for all domestic property and casualty    Fund is administered by the Department of Fish-
                                                                                                         Any company that fails to pay its tax when due
companies. The amount of each property and ca-       eries, Wildlife and Environmental Law Enforce-
                                                                                                         will be subject to interest on the unpaid balance.
sualty company’s credit shall be limited to that     ment to provide for conservation programs for
company’s credit share. A company seeking the        rare, endangered and nongame wildlife and plants    Line 43
credit must provide the Commissioner of Rev-         in the Commonwealth.                                Enter the total payment due. Insurance compa-
                                                                                                         nies are required to submit any payment due
enue with the amount of its retaliatory taxes        Line 34
                                                                                                         electronically. See TIR 16-9.
attrib utable to the surtax and payable for the pre- Enter the amount of any withholding tax from
ceding taxable year, before application for the      pass-through entities. Be sure to include the tax - Signature
credit, by December 31 of the current taxable        payer identification number of the person or en-    When the form is complete, it must be signed by
year. The commissioner of revenue shall be re-       tity submitting the withholding payment on behalf   the treasurer or assistant treasurer. If you are
sponsible for reporting to each company its credit   of the taxpayer.                                    signing as an authorized delegate of the appro-
share amount by February 15 of the current tax-                                                          priate corporate officer, check the box in the sig-
able year. A certificate of contribution issued by   Lines 30 through 36
                                                                                                         nature section and attach a Massachusetts Form
the Property and Casualty Initiative must accom-     Enter in line 30 any overpayment credited from
                                                                                                         M-2848, Power of Attorney.
pany the return.                                     2019 to 2020. Enter estimated tax payments
                                                     made in 2020 in line 31. Any extension payment      Schedule CMS: Tax Credits
Line 22                                              should be entered in line 32. Enter refundable      Financial institutions, insurance companies, busi-
A company shall be allowed a credit against the      credits from the Schedule CMS on line 35. Line      ness corporations, and other taxpayers subject to
premium tax equal to 1.5% (0.015) of such com-       36 should reflect the total payments made for the   tax under MGL ch 63 may be eligible for certain
pany’s total capital contribution in excess of their entire year.                                        tax credits in Massachusetts. Credits may be
full proportionate share which shall mean an in-
vestment in the Massachusetts Property and Ca-       Lines 37 through 39                                 used to offset a tax due, may be passed or shared
sualty Insurance Company Community and               If the amount in line 36 is larger than the amount  with another person or entity, or, in some cases
Economic Development Initiative.                     in line 29, enter the amount overpaid in line 37.   credits may be fully or partially refundable. MGL
                                                                                                         ch 63 taxpayers with credits available for use in

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the current taxable year must file a Schedule CMS     beneficiary of the taxpayer or (iii) to share with    the credits that may have been used to offset a
to claim most credits.                                taxpayer affiliates. The Brownfields Credit, Film     tax or shared as reported in Section 3 of this
For each credit claimed on a Schedule CMS, re-        Incentive Credit, or Medical Device Credit should     schedule. Enter the amount by which the available
port the amount of the credit available for use and   always be included in Section 1, unless the tax-      credit balance is being reduced and the amount
the amount of credit claimed to reduce tax for the    payer is requesting a refund of the Film Incentive    to be treated as a refundable credit, which may
current taxable year. For pass-through entities, re-  Credit. However, a taxpayer that received a credit    be either 90% or 100% of the reduction. See TIR
port  the  amount  of  credit  distributed  to        on a Massachusetts K-1 schedule from a pass-          13-6, Example 3, for an illustration.
partners/shareholders/beneficiaries in the credit     through entity or a credit transfer should report     Note: Do not report the refundable Film Incentive
shared column. Taxpayers also report the amount       such credit in Section 3 or 4, as applicable.         Credit in this section because these credits are is-
of a refundable credit they are using to request a    Section 2. Refundable Credits                         sued new certificate numbers from the DOR
refund of tax. See the 2020 Credit Manager            Section 2 is for reporting refundable credits the     when they are received from a pass-through en-
Schedule Instructions for more information on         taxpayer is using to request a refund. The Film In-   tity or a credit transfer. If the taxpayer is request-
how to complete the Schedule CMS and claim the        centive Credit should always be included in Sec-      ing a refund of the Film Incentive Credit, it should
credits.                                              tion 2 to the extent that the taxpayer is requesting  be reported in Section 2.
Credits reported on the Schedule CMS are gener-       a refund. However, a taxpayer that received a re-     List of Credit Names and Credit Codes
ally identified either by a certificate number as-    fundable credit on a Massachusetts K-1 from a         The following table identifies various credits that
signed by the issuing agency (which may be the        pass-through entity or a credit transfer should re-   may be available to a taxpayer subject to tax
DOR) or by the tax period end date in which the       port such credit in Section 4, to the extent that     under MGL ch 63 and that must be claimed on a
credit originated. If a credit has been assigned a    the taxpayer is requesting a refund. For each re-     Schedule CMS.
certificate number, the certificate number must be    fundable credit, report the amount of the credit
included on the Schedule CMS. A taxpayer that         available after taking into consideration any         Apprenticeship Tax Credit………..APPCRD*
does not include an assigned certificate number       amount of the credits that may have been taken        Brownfields . . . . . . . . . . . . . . . . . . BRWFLD
on the Schedule CMS will not be allowed the           to offset a tax or shared as reported in Section 1
                                                                                                            Certified Housing . . . . . . . . . . . . . . CRTHOU
credit on the tax return and will have their tax lia- of this schedule. Enter the amount by which the
bility adjusted by the DOR. Be sure to omit hy-       available credit balance is being reduced and the     Community Investment . . . . . . . . . CMMINV*
phens, spaces, decimals and other special             amount to be treated as a refundable credit,          Conservation Land . . . . . . . . . . . . . CNSLND*
symbols when entering the certificate number.         which may be either 90% or 100% of the reduc-
Also, enter the number from left to right.            tion. See TIR 13-6, Example 3, for an illustration.   Dairy Farm . . . . . . . . . . . . . . . . . . . DAIFRM*
                                                                                                            EDIP . . . . . . . . . . . . . . . . . . . . . . . . EDIPCR*
Likewise, a taxpayer that is required to complete     Section 3. Non-Refundable Credits
a separate schedule to claim a credit must include    Received from Massachusetts K-1                       EDIP-Vacant Storefront Credit…....VACSTR*
the separate schedule with the taxpayer’s return      Schedules                                             Employer Wellness. . . . . . . . . . . . . EMPWLL
filing. Failure to do so may result in the credit     Section 3 is for reporting credits the taxpayer re-   EOAC . . . . . . . . . . . . . . . . . . . . . . . EOACCR
being disallowed.                                     ceived on a Massachusetts K-1 schedule (SK-1,
If, by operation of MGL ch 63, § 32C or another       2K-1 or 3K-1) that the taxpayer is using  (i) to off- Film Incentive . . . . . . . . . . . . . . . . . FLMCRD*
provision of law, a credit normally identified by     set or reduce the taxpayer’s total tax due (ii) to    Harbor Maintenance. . . . . . . . . . . . HRBMNT
tax period end date is eligible for indefinite carry- pass to any partner, shareholder or beneficiary of    Historic Rehabilitation . . . . . . . . . . HISRHB
over, the credit should be reported as “non-expir-    the taxpayer or (iii) to share with taxpayer affili-
ing” and identification of the tax period of origin   ates. The Brownfields Credit, Film Incentive          Investment Tax . . . . . . . . . . . . . . . . INVTAX
is not necessary.                                     Credit, or Medical Device Credit should never be      Life Science (FDA) . . . . . . . . . . . . . LFSFDA*
                                                      included in Section 3.
Overview of Schedule CMS                                                                                    Life Science (ITC). . . . . . . . . . . . . . LFSITC*
The following is a brief overview of the Schedule     Note: Do not report the Brownfields Credit, Film
                                                                                                            Life Science (Jobs). . . . . . . . . . . . . LFSJOB*
CMS sections and where certain credits should         Incentive Credit, and Medical Device Credit in this
be reported. If a taxpayer is using a credit to re-   section because these credits are issued new cer-     Life Science (RD) . . . . . . . . . . . . . . LFSRDC
duce a taxpayer’s current year tax liability,         tificate numbers from the DOR when they are re-       Low-Income Housing. . . . . . . . . . . LOWINC
whether it is a non-refundable credit or a refund-    ceived from a pass-through entity or a credit
able credit, the credit should be reported in Sec-    transfer. These credits should always be reported     Low-Income Housing Donation . . . LIHDON
tion  1  or  3  of  the  Schedule  CMS.  Only  a      in Section 1, unless the taxpayer is requesting a     Medical Device . . . . . . . . . . . . . . . . MEDDVC
refundable credit that the taxpayer is seeking a re-  refund of the Film Incentive Credit.                  Research. . . . . . . . . . . . . . . . . . . . . REARCH*
fund for should be reported in either Section 2 or    Section 4. Refundable Credits Received                Vanpool . . . . . . . . . . . . . . . . . . . . . VANPOL
4 of the Schedule CMS. Generally, a credit should     from Massachusetts K-1 Schedules                      Veteran’s Hire . . . . . . . . . . . . . . . . . VETHIR
only be reported in one section on the Schedule       Section 4 is for reporting credits the taxpayer re-
CMS unless a portion of it is being used to offset    ceived on a Massachusetts K-1 schedule (SK-1,         *These credits may be partially or fully refund-
a tax and a portion is being refunded.                2K-1 or 3K-1) and that the taxpayer is using to       able. See Schedule CMS instructions for further
Section 1. Non-Refundable Credits                     request a refund. The Film Incentive Credit should    information.
Section 1 is for reporting credits the taxpayer is    never be included in Section 4. For each refund-      Note: Certified life sciences companies with a Re-
using (i) to offset or reduce the taxpayer’s total    able credit, report the amount of the credit avail-   search Credit exceeding the amount of credit that
tax due (ii) to pass to any partner, shareholder or   able after taking into consideration any amount of    may be claimed under MGL ch 63, § 38M for a

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taxable year may, to the extent authorized under agreements with each apprentice for whom the Certified Housing Development Tax Credit
the Life Sciences Tax Incentive Program, elect to credit is claimed, and the apprentice must be em- Taxpayers subject to tax under MGL ch 63 that
make 90% of the balance of remaining credits re- ployed for at least 180 calendar days in the tax- invest in housing development projects in Mass-
fundable. See MGL ch 63, § 38M(j). able year in which the credit is claimed. A achusetts may be eligible to claim the Certified
business corporation claiming the credit in a tax- Housing Development Credit (CHDC) in an
Credit Recapture Schedule able year may also be eligible for a credit in the amount up to 25% of the costs of qualified pro-
The Credit Recapture Schedule (CRS), which subsequent taxable year, provided that the Divi- ject expenditures as defined in MGL ch 40V, § 1.
eliminates Schedule RF, lists each credit for which sion of Apprentice Standards again certifies that Eligibility for and the amount of CHDC awarded
a recapture calculation must be made. the apprentice remains employed as an appren- are determined and administered by the Depart-
Certain Massachusetts tax credits are subject to tice during the subsequent taxable year. ment of Housing and Community Development
recapture as specified in the statute authorizing The ATC is not transferrable but is refundable. (DHCD). The CHDC is not refundable, but unused
the credit (e.g. the investment tax credit is subject The ATC is available for tax years beginning on or amounts may be transferred or carried forward
to recapture under MGL ch 63, § 31A(e) if an asset after January 1, 2019. See TIR 18-13 for further for 10 years. See TIRs 16-15, 10-15, and 10-14
for which the credit was taken is disposed of be- information. for further information.
fore the end of its useful life). Recapture may also To claim the ATC, enter the ATC certificate num- To claim the CHDC, enter the CHDC certificate
be triggered if the corporation no longer qualifies ber and the amount of ATC using credit code AP- number and the amount of CHDC using credit
for the credit (as when a manufacturing corpora- PCRD on Schedule CMS. code CRTHOU on Schedule CMS.
tion ceases to qualify as such or a corporation’s
status as a Life Sciences Company is terminated Brownfields Tax Credit Community Investment Tax Credit
as discussed in TIR 13-6.) Taxpayers subject to tax under MGL ch 63 and Taxpayers subject to tax under MGL ch 63 may
If a recapture calculation is required, the amount nonprofit organizations may be eligible to claim a be able to claim a Community Investment Tax
of the credit allowed is redetermined and the re- Brownfields Tax Credit (BTC) for amounts ex- Credit (CITC) for cash contributions made to a
duction in the amount of credit allowable is re- pended to clean up contaminated property in community partner to support implementation of
captured to the extent the credit was taken or Massachusetts in an amount equal to either 25% its community investment plan, or to a commu-
used in a prior year. See DD 89-7. Taxpayers who or 50% of the cost. The cleanup must begin on nity partnership fund. The CITC is equal to 50%
have a recapture calculation must complete this or before August 5, 2023, and costs must be in- of the total contribution made by the taxpayer and
schedule whether or not a recapture tax is deter- curred before January 1, 2024, and equal or ex- cannot be claimed for contributions of less than
mined to be due. ceed 15% of the assessed value of the property $1,000. The Department of Housing and Commu-
before the beginning of the cleanup. Contami- nity Development (DHCD) is responsible for de-
For credits tracked by certificate numbers, enter nated properties must be owned or leased for termining which contributions qualify for the CITC
each certificate number and the associated cred- business purposes, reported to the Massachu- and the actual amount of the CITC awarded. The
its separately. For credits not tracked by certificate setts Department of Environmental Protection CITC is not transferrable. However, the CITC is re-
number, enter credits separately by type and the (DEP), cleaned up in compliance with DEP’s stan- fundable, or, alternatively, may be carried forward
year to which they relate. List only those credits dards, and located in an economically distressed for 5 years. For further information, see 760 CMR
and certificate numbers or tax years for which a area identified by DEP. Unused portions of BTC 68.00, 830 CMR 62.6M.1, and TIRs 16-15, 13-
reduction in the credit is being calculated. may be carried forward for the next 5 years. If a 15, and 12-10.
For more information and examples, see the BTC recipient does not maintain the property in To claim the CITC, enter the CITC certificate num-
Credit Recapture Schedule instructions. compliance with standards set out by DEP, the ber and the amount of CITC using credit code
credit may be recaptured. The BTC is not refund- CMMINV on Schedule CMS.
Brief Summary of Available Credits on able. For taxpayers subject to a minimum excise
Schedule CMS under MGL ch 63, the BTC cannot reduce the ex- Conservation Land Tax Credit
The following are brief summaries describing the cise due below the minimum amount. The BTC is Taxpayers subject to tax under MGL ch 63 that
specific credits that may be available to a taxpayer also subject to the 50% limitation for taxpayers make qualified donations of certified land to a
subject to tax under MGL ch 63 and that must be subject to tax under MGL ch 63, § 39. public or private conservation agency in Mass-
claimed on a Schedule CMS. achusetts may be eligible for a Conservation Land
The BTC may be transferred, sold or assigned to Tax Credit (CLTC). The Executive Office of Energy
Apprenticeship Tax Credit another taxpayer with a liability under MGL ch 62 and Environmental Affairs (EEA) ultimately deter-
Businesses corporations subject to tax under or 63, or to a nonprofit organization. A taxpayer mines which donations qualify for CLTC and the
MGL ch 63 that employ qualified apprentices may must complete a Form BCA, Brownfields Credit actual amount of CLTC attributable to the dona-
be eligible for an Apprenticeship Tax Credit (ATC). Application, and submit it to DOR. If approved, tion. The CLTC is equal to 50% of the fair market
The credit is equal to the lesser of $4,800 or 50% DOR will issue a certificate reflecting the amount value of the donated certified land but may not
of the wages paid by the business to each quali- of the BTC awarded. The party receiving the BTC exceed $75,000. The CLTC is refundable but is
fied apprentice it hires. Business corporations are must include the certificate number with each tax not transferable. Taxpayers who claim CLTC may
eligible for up to $100,000 in credits each calen- return in which the credits are being applied. BTC not claim any other credit or deduction in the
dar year. To claim the credit, the primary place of application forms, including Form BCA, and addi- same tax year for the costs related to the same
employment of the apprentice must be in Mass- tional information are available at mass.gov/dor. donated, certified land. For further information,
achusetts, the business corporation employing To claim the BTC, enter the BTC certificate num- see 301 CMR 14.00, and 830 CMR 62.6.4.
the apprentice must register with the Division of ber and the amount of BTC using credit code BR-
Apprentice Standards as an apprenticeship pro- WFLD on Schedule CMS.
gram sponsor and enter into apprenticeship

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To claim the CLTC, enter the CLTC certificate completed Schedule EOAC and Schedule CMS EDIP Credit for Projects Certified on or
number and the amount of CLTC using credit with the return. after January 1, 2017
code CNSLND on Schedule CMS. The EDIPC provisions were significantly changed
Economic Development Incentive Program
for projects certified on or after January 1, 2017.
Dairy Farm Tax Credit Credit for Projects Certified on or After
For projects certified by the EACC on or after Jan-
Massachusetts dairy farmers taxable under MGL January 1, 2010 and Before January 1, uary 1, 2017, the EDIPC for taxpayers subject to
ch 63 may be eligible for a Dairy Farm Tax Credit 2017 tax under MGL ch 63 is determined by the EACC
(DFTC) based on the amount of milk produced For projects certified by the EACC on or after Jan- based on numerous factors set forth in MGL ch
and sold during the taxable year when the cost of uary 1, 2010 and before January 1, 2017, the 23A § 3D. The EACC may award a refundable
milk drops below a price based on federal stan- Economic Development Incentive Program Credit EDIPC to any certified project. Unless the EDIPC
dards. The dairy farmer must have a certificate of (EDIPC) is available to taxpayers subject to tax awarded is refundable, the EDIPC may not offset
registration as a Massachusetts dairy farm from under MGL ch 63 with respect to certified pro- more than 50% of the excise due. Carryover of
the Massachusetts Department of Agricultural jects as defined under MGL ch 23A. The EDIPC is unused EDIPC is available only to the extent
Resources (MDAR). The total amount of DFTC equal to a percentage of the cost of qualifying authorized by the EACC. Recapture is required
granted through the program cannot exceed property purchased by a certified project for busi- only if the EACC revokes the certification of a pro-
$6,000,000 in any year. The DFTC is refundable ness use within Massachusetts. As part of the ject. The EDIPC is not transferable. For taxpayers
but is not transferrable. project certification, the EACC may (but is not re- subject to a minimum excise under MGL ch 63,
To claim the DFTC, enter the MDAR-issued cer- quired to) award a credit under the program and the EDIPC may not reduce the excise due below
tificate number and the amount of DFTC from the determine the percentage of the cost of the prop- the minimum amount. See TIRs 16-15 and 10-01
MDAR’s Dairy Farmer Certified Tax Credit State- erty to be used to determine the credit. In addi- for further information.
ment using credit code DAIFRM on Schedule tion, the EACC may award an EDIPC that is
CMS. refundable. To qualify for the EDIPC, the qualify- To claim the EDIPC, complete Schedule EDIP and
ing property must be used exclusively in the cer- enter the amount of EDIPC using credit code
Economic Opportunity Area/Economic tified project in Massachusetts and must meet the EDIPCR on Schedule CMS. Also, enter the EACC-
Development Incentive Program Credits same tests imposed for the 3% ITC. issued certificate number on Schedule CMS. In-
clude both the completed Schedule EDIP and
Economic Opportunity Area Credit Unless the EDIPC awarded is refundable, the Schedule CMS with the return.
Taxpayers subject to tax under MGL ch 63 that credit may not offset more than 50% of the tax
participated in projects certified by the Economic due. Carryover of unused EDIPC is available only EDIP Credit for Vacant Storefronts
Assistance Coordinating Council (EACC) before to the extent authorized by the EACC. The EACC Effective January 1, 2019, awards of EDIPC are
January 1, 2010 and in effect through December may, in consultation with DOR, limit (but not ex- also available as a Vacant Storefront Credit (VSC)
31, 2016, may be eligible to claim an Economic pand) the EDIPC to a specific dollar amount or to taxpayers subject to tax under MGL ch 63 that
Opportunity Area Credit (EOAC) equal to 5% of time duration or in any other manner deemed ap- occupy vacant storefronts in downtown areas
the cost of qualifying property purchased for propriate by the EACC. St. 2009, c. 166, § 18. For that have been designated as Certified Vacant
business use within a certified project within an example, the EACC may limit the EDIPC available Storefront Districts. To claim the VSC a taxpayer
Economic Opportunity Area (EOA). A certified with respect to a particular project to a specific must apply for and obtain certification from the
project is a project approved by the EACC. To dollar maximum, even if the actual dollar amount EACC and must commit to occupy the vacant
qualify for the EOAC, the property must be used of the qualifying purchases would otherwise gen- storefront for not less than 1 year. The taxpayer
exclusively by the certified project in an EOA and erate a higher credit amount. Similarly, the EACC does not need to invest in improvements or cre-
must meet the same tests imposed for the 3% may limit the otherwise applicable credit carry ate new jobs to claim the VSC. The EACC awards
Investment Tax Credit (ITC) (see ITC summary forward period provided by MGL ch 63, § 38N(d). the VSC on a competitive basis, taking into ac-
below). The EOAC cannot offset more than 50% The EDIPC may be subject to recapture if a tax- count the factors set forth in MGL ch 23A,§ 3C.
of the tax due. Any unused EOAC may be carried payer’s business is decertified by the EACC, or a The amount of VSC available to taxpayers occu-
forward for 10 years, while credits not used be- taxpayer stops using the qualifying property in a pying vacant storefronts is limited to $500,000 in
cause of the 50% limitation may be carried over certified project before the end of the property’s a calendar year.
indefinitely. The EOAC may be subject to recap- useful life. The EDIPC is not transferable. For tax- The VSC is not transferrable but is refundable. For
ture if a taxpayer’s business is decertified by the payers subject to a minimum excise under MGL additional information about the credit, contact
EACC, or a taxpayer stops using the qualifying ch 63, the EDIPC may not reduce the excise due the Massachusetts Office of Business Develop-
property in a certified project before the end of below the minimum amount. See TIRs 16-15, 14- ment at 617-973-8600.
the property’s useful life. The EOAC is neither re- 13, 10-15, and 10-1 for further information.
To claim the VSC, enter the amount of the VSC
fundable nor transferrable. For taxpayers subject To claim the EDIPC, complete Schedule EDIP and using credit code VACSTR on Schedule CMS.
to a minimum excise under MGL ch 63, the EOAC enter the amount of EDIPC using credit code Also, enter the EACC-issued certificate number on
may not reduce the excise due below the mini- EDIPCR on Schedule CMS. Also, enter the EACC- Schedule CMS.
mum amount. The EOAC is not available to certi- issued certificate number on Schedule CMS. In-
fied projects that were certified by the EACC on clude both the completed Schedule EDIP and Employer Wellness Credit
or after January 1, 2010. See TIRs 16-15 and 10- Schedule CMS with the return. The Employer Wellness Credit (EWC) program
01 for further information. expired on December 31, 2017 and no new EWC
To claim the EOAC, complete Schedule EOAC and amounts are being awarded. However, remaining
enter the amount of EOAC using credit code credits awarded for the 2015 through 2017 tax
EOACCR on the Schedule CMS. Include both the

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years and carried over by a taxpayer may be ap- To claim the FIC, enter the FIC certificate number To claim the HRTC, enter the HRTC certificate
plied in the 2020 tax year. and the amount of FIC using credit code FLMCRD number and the amount of HRTC using credit
Effective for tax years beginning on or after Janu- on Schedule CMS. Supporting documentation code HISRHB on Schedule CMS. Supporting doc-
ary 1, 2013, a taxpayer subject to tax under MGL must be available to DOR upon request. Certifi- umentation must be enclosed with the return or
ch 63 that employed 200 or fewer workers was cate application forms and additional information the HRTC may be disallowed. For further infor-
eligible for the EWC for up to 25% of its costs as- are available at mass.gov/dor. mation on documentation see the Transfer/Sale
HRC: Historic Rehabilitation Credit Certificate
sociated with implementing a “certified wellness Harbor Maintenance Tax Credit Form and Allotment Schedule HRC: Historic Re-
program” for its employees. Prior to the EWC Business corporations subject to tax under MGL habilitation Credit Summary Form.
program’s expiration on December 31, 2017, a ch 63 that have paid certain federal harbor main-
taxpayer could claim the EWC by applying to the tenance taxes under IRC § 4461 may be eligible Investment Credit
Department of Public Health (DPH) to certify its to claim the Harbor Maintenance Tax Credit Taxpayers subject to tax under MGL ch 63, § 39
wellness program. The amount of the credit (HMTC). A corporation is eligible for the HMTC may be eligible to claim the Investment Tax Credit
available to be claimed could not exceed $10,000 only for federal harbor maintenance taxes paid (ITC). To claim the ITC, a corporation must qualify
in any tax year and the credit was not refundable. that are attributable to the shipment of break-bulk as a manufacturing or research development cor-
A taxpayer may carry forward any unused portion or containerized cargo by sea and ocean-going poration under MGL ch 63, § 42B, or be princi-
of the EWC for up to 5 taxable years. For tax- vessels through a Massachusetts harbor facility. pally engaged in agriculture or commercial
payers subject to a minimum excise under MGL The HMTC is neither refundable nor transferrable. fishing. Such corporations may earn a credit
ch 63, the EWC may not reduce the excise due The HMTC may not reduce the corporate excise equal to 3% of the cost of “qualifying tangible
below the minimum amount. due below the minimum amount but is not sub- property” acquired, constructed, reconstructed,
Since the EWC program expired on December 31, ject to the 50% limitation imposed by MGL ch 63, or erected during the taxable year. “Qualifying
2017, a taxpayer may only claim a previously § 32C. Any unused portion of the HMTC may be tangible property” includes tangible property,
awarded EWC that was carried over to subse- carried forward for the next 5 tax years. See TIR buildings, and structural components acquired by
quent tax years. Information about the criteria 97-4 and Schedule HM instructions for further in- purchase (as defined in IRC § 179(d)) that is used
DPH utilized for authorizing and certifying the formation. and located in Massachusetts on the last day of
EWC may be found in DPH’s “Massachusetts To claim the HMTC, complete Schedule HM and the taxable year, and is depreciable under IRC §
Wellness Tax Credit Incentive” regulation, 105 enter the amount of HMTC using credit code 167 with a useful life of four years or more. Any
CMR 216.000. HRBMNT on Schedule CMS. Include both the unused portion of the credit may be carried for-
To claim the EWC, enter the amount of EWC completed Schedule HM and Schedule CMS with ward for 3 tax years after the credit was earned,
using credit code EMPWLL on Schedule CMS. the return. while credits not used because of the 50% limita-
tion may be carried over indefinitely. The ITC may
Also, enter the DPH issued certificate number on
Historical Rehabilitation Credit be recaptured if the eligible property for which the
Schedule CMS.
Taxpayers subject to tax under MGL ch 63 that ITC is claimed is disposed of or ceases to be in
Film Incentive Credit have made qualified expenditures in the rehabili- qualified use prior to the end of its useful life (as
Motion picture production companies subject to tation of a qualified historic structure may be eli- determined by the property’s depreciation period
tax under MGL ch 63 may be eligible to claim the gible to claim a Historic Rehabilitation Tax Credit for federal tax purposes). The ITC is neither re-
Film Incentive Credit (FIC) for certain payroll and (HRTC). The HRTC may be claimed for up to 20% fundable nor transferrable. The ITC may not re-
production expenses. Production companies that of the taxpayer’s rehabilitation expenditures made duce the corporate excise due below the
incur at least $50,000 of production costs in in substantially rehabilitating a historic structure minimum amount, nor may the amount of the
Massachusetts are eligible for a credit equal to that has received final certification from the credit exceed 50% of the taxpayer’s liability.
25% of the total Massachusetts payroll for the Massachusetts Historical Commission and placed To claim the ITC, complete Schedule H and enter
production, excluding salaries of $1 million and into service (where occupancy of the entire struc- the amount of ITC using credit code INVTAX on
higher. In addition, production companies whose ture or some identifiable portion of it is permit- Schedule CMS. Include both the completed
Massachusetts production expenses exceed 50% ted). Unused portions of HRTC may be carried Schedule H and Schedule CMS with the return.
of the total production cost may receive a credit forward for the following 5 tax years. The HRTC
equal to 25% of the total Massachusetts produc- may be transferred or sold to another taxpayer Life Sciences Refundable FDA User Fees
tion expense. The FIC may be applied to reduce a but is not refundable. HRTC awards also may be Tax Credit
taxpayer's liability (including the minimum ex- transferred to other qualifying taxpayers that ac- Certified life sciences companies subject to tax
cise), reduced by any other available credits, after quire a historic structure, as long as certain crite- under MGL ch 63, to the extent authorized by the
which 90% of any remaining credits may be re- ria are met. Any HRTC claimed by the taxpayer Life Sciences Tax Incentive Program, may be eli-
funded to the taxpayer. Subject to certain condi- may be subject to recapture if the taxpayer dis- gible to claim a Life Sciences Refundable FDA
tions, unused FIC may be carried over, refunded, poses of its interest in the structure within 5 years User Fees Tax Credit. The credit is equal to 100%
or transferred by the taxpayer for the following 5 of its placement into service. HRTC awards how- of the user fees paid on or after June 16, 2008, to
tax years. FIC transferees may carry forward un- ever are not subject to recapture. For taxpayers the US Food and Drug Administration (FDA) upon
used FIC for the 5 tax years subsequent to the subject to the corporate excise, the HRTC is not submission of an application to manufacture a
first tax year the FIC was allowed to the initial FIC subject to the 50% limitation under MGL ch 63, § human drug in Massachusetts. The credit may be
transferor. The FIC is not refundable to the trans- 32C but may not reduce the excise below the claimed in the tax year in which the application
feree. See TIR 07-15 for further information. minimum amount. For further information, see for licensure of an establishment to manufacture
830 CMR 63.38R.1 and TIRs 16-15 and 10-11. the drug is approved by the FDA. To be eligible
for the credit, more than 50% of the research and

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development costs for the drug must have been setts Life Sciences Center in consultation with the properties may generate an LIHTC for investors,
incurred in Massachusetts. Certified life sciences DOR. A taxpayer claiming the LSRJTC must com- and ultimately allocates the amount of credit a
companies may use the FDA user fees credit to mit to the creation of a minimum of 50 net new taxpayer may claim based on a total pool of
reduce their tax to zero. At the option of the tax- permanent full-time positions in Massachusetts. $20,000,000. The LIHTC may be claimed in the
payer and to the extent authorized pursuant to the If the LSRJTC claimed by a taxpayer exceeds the year that a “qualified Massachusetts project” is
Life Sciences Tax Incentive Program, where the tax otherwise due, 90% of the balance of such placed in service and for each of the four subse-
credit exceeds the tax due, 90% of the balance of LSRJTC may, at the option of the taxpayer and to quent taxable years. The properties must also
the excess credit is refundable. A life sciences the extent authorized by the Life Sciences Tax In- meet the requirements established by Massachu-
company claiming the credit may not also deduct centive Program, be refundable. Excess LSRJTC setts and federal laws, and be owned by a tax-
FDA user fees for which the credit is claimed on amounts cannot be carried forward to subse- payer who enters into a regulatory agreement
its return. In the event a company’s certification quent taxable years. The LSRJTC is not trans- with DHCD.
as a life sciences company is revoked, the recap- ferrable. The LSRJTC is subject to all of the Any unused LIHTC may be carried forward for the
ture of credit may be required. The credit is not requirements of the Life Sciences Tax Incentive next 5 tax years. Alternatively, unused credits may
transferrable. For further information, see TIRs Program under MGL ch 23I. In the event of the be transferred. If an event or circumstance occurs
13-6 and 08-23. revocation of a company’s certification as a life that results, or would have resulted, in the recap-
To claim the credit, complete a Schedule RLSC sciences company or other disqualifying events, ture of any portion of a federal Low Income Hous-
and enter the amount of the credit using credit the LSRJTC may be subject to recapture. For ing Credit, then the Massachusetts LIHTC may
code LFSFDA on the Schedule CMS. more information, see TIRs 13-6, 11-6, and 08- also be subject to recapture. The LIHTC is not re-
23. fundable.
Life Sciences Refundable Investment Tax To claim the LSRJTC, complete a Schedule RLSC For taxpayers subject to a minimum excise under
Credit and enter the amount of LSRJTC using credit MGL ch 63, the LIHTC may not reduce the excise
Certified life sciences companies subject to tax code LFSJOB on Schedule CMS. due below the minimum amount.
under MGL ch 63, to the extent authorized by the
Life Sciences Tax Incentive Program, may claim Life Sciences Research Tax Credit To claim the LIHTC, enter the LIHTC certificate
a Life Sciences Refundable Investment Tax Credit Certified life sciences companies subject to tax number and the amount of LIHTC using credit
(LSRITC) equal to 10% of the cost of qualifying under MGL ch 63, to the extent authorized by the code LOWINC on Schedule CMS. Supporting
property acquired, constructed, reconstructed, or Life Sciences Tax Incentive Program, may claim documentation must be enclosed with the return
erected and used exclusively in Massachusetts. If a Life Sciences Research Tax Credit (LSRTC) for or the LIHTC may be disallowed. For further in-
the LSRITC exceeds the tax due, 90% of the bal- certain expenditures that do not qualify for the formation on documentation see the Transfer
ance of the LSRITC may, at the option of the tax- MGL ch 63, § 38M Research Tax Credit (RC). The LIHC: Low-Income Housing Credit Statement
payer and to the extent authorized pursuant to the LSRTC generally is calculated in the same man- Form and Allotment Schedule LIHC: Low-Income
Life Sciences Tax Incentive Program, be refund- ner as the RC, but may also include expenditures Housing Credit Summary Form. For further infor-
able to the taxpayer for the tax year in which the for research related to legally mandated clinical mation regarding this credit, contact DHCD, Divi-
qualified property giving rise to the LSRITC is trial activities performed both inside and outside sion of Private Housing, at (617) 727-7824.
placed in service. If the taxpayer does not opt to of Massachusetts. Unlike the RC, the LSRTC is
make the LSRITC refundable, then the LSRITC not refundable for certified life sciences compa- Low Income Housing Donation Tax Credit
may be carried forward for up to 10 years. Certi- nies. See the Research Credit summary below. Taxpayers subject to tax under MGL ch 63 that
fied life sciences companies qualifying for the The LSRTC is not transferrable. However, unused make a “qualified donation” of real or personal
Economic Development Incentive Program Credit portions of the LSRTC may be carried forward for property to certain non-profit entities for use in
(EDIPC) may only take the EDIPC to the extent of 15 years. In the event of the revocation of a com- purchasing, constructing or rehabilitating a “qual-
an additional 2% of the cost of the qualifying pany’s certification as a life sciences company or ified Massachusetts project” may be eligible to
property. In the event a company’s certification as other disqualifying events, the LSRTC may be claim a Low Income Housing Donation Tax Credit
a life sciences company is revoked, the recapture subject to recapture. For certified life sciences (LIHDTC). This credit operates in a similar man-
of the LSRITC may be required. The LSRITC is companies subject to a minimum excise, the ner to the Low Income Housing Tax Credit
not transferrable. For certified life sciences com- LSRTC cannot reduce the amount of the excise (LIHTC), but the LIHDTC is limited to 50% of the
panies subject to a minimum excise, the LSRITC due to less than the minimum amount. For fur- amount of the “qualified donation,” which may be
cannot reduce the amount of the excise due to ther information, see TIRs 13-6 and 08-23. increased to 65% by the Department of Housing
and Community Development (DHCD). In addi-
less than the minimum amount. For further infor- To claim the LSRTC, complete a Schedule RLSC tion, the LIHDTC may only be claimed in the year
mation, see TIRs 13-6 and 08-23. and enter the amount of LSRTC using credit code that the “qualified donation” is made. However,
To claim the LSRITC, complete a Schedule RLSC LFSRDC on Schedule CMS. any unused LIHDTC may be carried forward for
and enter the amount of LSRITC using credit the next 5 years. DHCD determines eligibility and
code LFSITC on Schedule CMS. Low Income Housing Tax Credit
Taxpayers subject to tax under MGL ch 63 who ultimately allocates the LIHDTC a taxpayer may
Life Sciences Refundable Jobs Tax Credit invest in a qualified low-income housing project claim based on a total pool of $20,000,000
Certified life sciences companies subject to tax located in Massachusetts may be eligible for the shared with the LIHTC. Only one-fifth of awarded
under MGL ch 63, to the extent authorized by the Low Income Housing Tax Credit (LIHTC). The De- LIHDTC will count towards this pool. The LIHDTC
Life Sciences Tax Incentive Program, may receive partment of Housing and Community Develop- is not refundable but is transferrable in the same
a Life Sciences Refundable Jobs Tax Credit (LSR- ment (DHCD) determines which low-income manner as the LIHTC.
JTC) in an amount determined by the Massachu- housing projects will qualify for the LIHTC, which

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The property must also meet the requirements but only if the services were performed for re- POL on Schedule CMS. Include both the com-
established by Massachusetts and federal laws search purposes or the supplies were used to pleted Schedule VP and Schedule CMS with the
and be owned by an owner who enters into a reg- conduct research in Massachusetts. The RC return.
ulatory agreement with DHCD. If an event or cir- amount is limited to the first $25,000 of excise
cumstance occurs that results, or would have due, plus 75% of any excise due in excess of Veteran’s Hire Tax Credit
resulted, in the recapture of any portion of a fed- $25,000. The RC is neither refundable nor trans- Businesses subject to tax under MGL ch 63 that
eral Low Income Housing Credit, then the Mass- ferrable. Business corporations subject to a mini- hire veterans who live and work in Massachusetts
achusetts LIHDTC may also be subject to mum excise under MGL ch 63 cannot use the RC may be eligible for a Veteran’s Hire Tax Credit
recapture. For taxpayers subject to a minimum to reduce their tax due to below the minimum (VHTC). The credit is equal to $2,000 for each
excise under MGL ch 63, the LIHDTC may not re- amount. However, credits in excess of the tax- qualified veteran hired. The business must em-
duce the excise due below the minimum amount. payer’s liability may be carried over for 15 years, ploy fewer than 100 employees; be certified by
To claim the LIHDTC, enter the LIHDTC certificate while credits not used because of the 75% rule the Commissioner of Veteran’s Services; and
number and the amount of LIHDTC using credit may be carried over indefinitely. The deduction al- qualify for and claim the federal Work Opportunity
code LIHDON on Schedule CMS. Supporting doc- lowed to a corporation for any research expenses Credit allowed under IRC § 51. A business may
umentation must be enclosed with the return or generating an RC must be reduced by the amount be eligible for a second VHTC for the next taxable
the LIHDTC may be disallowed. For further infor- of RC generated. This amount is added back to year if the veteran continues to work for the busi-
mation on documentation see the Transfer LIHC: income on Schedule E, line 13. ness. In order to claim the VHTC, the primary
place of employment and the primary residence
Low-Income Housing Credit Statement Form and Certified life sciences companies that have an RC of the qualified veteran must be in Massachu-
Allotment Schedule LIHC: Low-Income Housing that exceeds the amount of the credit that may be setts, and the business corporation must obtain
Credit Summary Form. For further information re- claimed under MGL ch 63, § 38M for a taxable certification that the veteran is a qualified veteran,
garding this credit, contact DHCD, Division of Pri- year may, to the extent authorized under the Life as defined in IRC § 51(d)(3), from the Depart-
vate Housing, at (617) 727-7824. Sciences Tax Incentive Program, elect to make ment of Career Services, no later than the em-
90% of the balance of the remaining credits re- ployee’s first day of work.
Medical Device Tax Credit fundable. See TIR 08-23, section 5.
Medical Device Companies taxable under MGL ch The VHTC is neither refundable nor transferrable.
63 may be eligible to claim a Medical Device Tax To claim the RC, complete Schedule RC and enter Any amount of VHTC that exceeds the tax due in
Credit (MDTC). The MDTC is equal to 100% of the amount of RC using credit code REARCH on the current taxable year may be carried forward
the user fees actually paid by the medical device Schedule CMS. Include both the completed to any of the 3 subsequent taxable years. The
company to the United States Food and Drug Ad- Schedule RC and Schedule CMS with the return. VHTC is available for qualified veterans hired after
ministration (FDA). To qualify for the MDTC, the Vanpool Credit July 1, 2017. A business subject to a minimum
user fees must be paid during the tax year for Business corporations subject to tax under MGL excise under MGL ch 63 cannot use the credit to
which the tax is due for pre-market submissions ch 63 may be eligible for a Vanpool Credit (VPC) reduce its tax due to below the minimum amount.
(e.g., applications, supplements, or 510(k) sub- equal to 30% of the cost incurred during the tax- See TIR 17-10 for further information.
missions) to market new technologies developed able year for the purchase or lease of company To claim the VHTC, enter the VHTC certificate
or manufactured in Massachusetts. The MDTC shuttle vans used by the corporation in an em- number and the amount of VHTC using credit
may not be carried forward to subsequent tax ployer-sponsored ride sharing program in Mass- code VETHIR on Schedule CMS.
years. The MDTC is not refundable. However, un- achusetts. The company shuttle vans must be
used portions of the MDTC may be transferred to situated in Massachusetts on the last day of the
a purchasing company, who may carry over the corporation's taxable year and used to bring em-
MDTC but must use it within 5 years of the is- ployees from their homes to their jobs or stu-
suance of the certificate. The purchasing com- dents from a public transportation facility to a
pany may not transfer the MDTC. The MDTC may school campus in Massachusetts. The amount of
not reduce the purchasing company’s corporate VPC will be prorated for property disposed of or
excise due below the minimum excise. no longer having a qualified use prior to the end
To claim the MDTC, enter the MDTC certificate of the tax year. Additionally, the VPC will be re-
number and the amount of MDTC using credit captured if the property on which the VPC has
code MEDDVC on Schedule CMS. Certificate ap- been taken is disposed of or the property ceases
plication forms and additional information are to be in qualified use prior to the end of its useful
available at mass.gov/dor. life. No recapture is necessary if the property has
been in qualified use for more than 4 consecutive
Research Credit years. The VPC is neither refundable nor trans-
Business corporations subject to an excise under ferrable. For corporations subject to the corporate
MGL ch 63 that incur “qualified research ex- excise, the VPC may not reduce the corporate ex-
penses” and “basic research payments” may be cise due below the minimum amount, nor may
able to claim a Research Tax Credit (RC). The RC the amount of VPC allowable in any one tax year
closely parallels the federal research credit. Gen- exceed 50% of the corporation’s corporate excise
erally, “qualified research expenses” include liability.
wages paid to employees, a portion of wages paid
to contractors, and amounts paid for supplies, To claim the VPC, complete Schedule VP and
enter the amount of VPC using credit code VAN-

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